Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Council advances first reading to fund Hilton conference-center improvements with EDC-backed financing
Summary
In a first reading the council approved a resolution authorizing the Nassau Bay EDC to pursue roughly $2.8 million in financing to acquire and improve 5,000 sq ft of conference center space at the Hilton Nassau Bay Hotel, to be serviced by hotel tax or EDC sales-tax revenue due to investor concentration concerns.
The Nassau Bay City Council completed a first reading on March 16 for a resolution authorizing the Nassau Bay Economic Development Corporation to undertake a business development project to acquire and improve approximately 5,000 square feet of conference center space within the Hilton Nassau Bay Hotel and related parking.
Staff explained the EDC financing approach is necessary because direct hotel revenue bonds were constrained by a concentration issue: with four hotels in the area (one temporarily offline), the project was considered too risky for traditional bond investors. The proposed structure calls for EDC-backed financing and an interlocal agreement that would allow the city to transfer future hotel-occupancy-tax revenue to the EDC to help service the debt.
Jaime told council the amount discussed is roughly $2,800,000 plus issuance costs and that, if timelines hold, staff aims to close and deliver funds in mid-June. The resolution was presented as a first reading and the council moved and approved the measure to proceed to a second reading and final action at the next meeting.
Council voiced no objections during the first reading; the motion passed by voice vote. Staff said they will return for a second reading and requested council direction about the interlocal agreement and final financing documents prior to closing.
